The ATO now has released alternative JobKeeper “turnover decline” tests for businesses that are unable to compare their turnover to the 2019 period.  

The following seven alternative tests are applicable. If you are unsure which (if any) suit your business' circumstances, MGR can help.

1. The entity commenced before 1 March 2020 but after the relevant comparison period.

2. The entity acquired or disposed of part of the business after the relevant comparison period (the business is not the same business in that period as it is now).

3. The entity undertook a restructure after the relevant comparison period (the business is not the same business in that period as it is now).

4. The entity's turnover substantially increased by:

• 50% or more in the 12 months immediately before the applicable turnover test period; or
• 25% or more in the 6 months immediately before the applicable turnover test period, or
• 12.5% or more in the 3 months immediately before the applicable turnover test period.

5. The entity was affected by drought or other declared natural disaster during the relevant comparison period.

6. The entity has a large irregular variance in their turnover for the quarters ending in the 12 months before the applicable turnover test period, excluding business that have cyclical or regular seasonal variance in their turnover, or

7. The entity is a sole trader or small partnership where sickness, injury or leave have impacted an individual’s ability to work which has affected turnover.

Please be aware that the ATO cannot determine an alternative decline in turnover test in all circumstances. It is only where there is an event or circumstance that is outside the usual business setting for entities of that class which results in the relevant comparison period in 2019 not being appropriate for measuring decline in turnover.

The ATO can also only determine a test for a class of entities and cannot make discretionary decisions for individual entities.  

If you fall into more than one of the classes of entities covered by the alternative test, you can choose which alternative decline in turnover test to apply. You only need to satisfy one of the tests.

Important dates to remember:

• From 20 April: enrol for JobKeeper payment.
• By 30 April: enrol and pay your employees to claim JobKeeper payments for April.
• 4 May onwards: identify your employees.
• Each month: reconfirm eligibility.
• If you need more time, you have until the end of May to enrol and identify your employees.

We at MGR are here to provide you with professional advice and assistance relating to all COVID-19 economic measures and stimulus support. Our expert team of accountants can help guide you through this process so you are confident you are doing everything right for your business and employees.

Call us today on (03) 5443 8888 or email us at mgr@mgr.com.au.